We believe PI represents a good value for DR clients during this economic time.
The current economic climate increases the viability PI. As major advertisers in segments such as automotive, finance and retail reduce spend levels, more inventory is being assimilated by DR and tangentially, PI.
Most advertisers will see a minimal affect if any from the DTV transition. Those who are unprepared for the DTV transition are mostly very low income, rural households and typically not a strong target market.
The Presidential Inauguration was on Tuesday January 20th and CNN enjoyed the largest viewing audience. It’s projected that more people watched the Presidential Inauguration than any other broadcast – including the Super Bowl.
NEW YORK (AdAge.com) — By the time final numbers are crunched tomorrow morning, President Barack Obama’s inauguration likely will have been watched by more people and on more platforms than virtually any other televised event in U.S. history — including the Super Bowl. This year’s biggest winner: the web, with cable news, social networks and even sports leagues capturing a record share of viewers tuning in and live-blogging online throughout the afternoon.
December was the month that television stations and national cable finally responded to the down economy and became aggressive with their rate negotiation. We found that overall, regional rates were down 50% compared to the same month last year and national rates were down 20%.
Despite record-breaking funds raised by President-elect Barack Obama, total political spending from the election will come in below expectations, about 28% lower. According to preliminary estimates from Borrel Associates, overall spending will total $2.16 billion with about $2 billion spent on traditional media including TV and radio and $17.9 million spent online. Projected political spending was $3 billion.
Overall this was a disappointment election for television; good news for advertisers, clearance levels were much higher and rates lower than projected.
The continuing economic crisis is causing ad rates to plummet even during the typical highest demand time of year, 4th quarter. The largest advertising categories Automotive, Retail and Financial have experienced massive cut to advertising budgets in response to the economy leaving huge amount of available inventory in local and national television.
In theory, due to low demand on television (lower rates) the cost per lead should remain constant. However because of inertia, the television rates are not dropping at the same rate that response is dropping. This is a temporary state, and if the economy continues as is, cost per leads will be corrected with lower station rates.
Even as advertising response declines, it should be noted that demand is quietly accumulating at its normal pace. Your target market may not be responding at normal levels, but the demand is still there and is accumulating as time passes. The response and sales will be realized when your target finally responds out of necessity.
Wonderful things just keep happening. Our current clients are achieving even greater heights, former clients are returning, and the success of our entire team is attracting new business!
Against this backdrop of growth, we’re launching our new web site, and this blog in which we hope to share our thoughts pertaining to the ad buying business and the media industry at large. We invite you to read, comment…and be a part of the discussion!
In the meantime, if you are attending the Response Expo 2008 in San Diego, please look for us in booth #310!